Curbing Enthusiasm

There is no big news to report that is driving gold and silver today.

Gold tested resistance again, which may have tipped technical movements into the fundamental side of influences, that is, a steady pressure.

A few modest concrete events this week will serve to keep a lid on gold, especially, as the weekend approaches.

The weekend itself is a big factor limiting gains right now. No one wants to be sipping their favorite festive beverage while contemplating America's Founding Fathers all the time nursing a fear that the rest of the world will trade around the best laid plans of New York investors.

'Tis a brave man (or woman) who will sit tight on gold after Thursday morning as New York decamps for the ocean, mountains, lakes and streams.

Thursday also will give us the payroll report from the Department of Labor. The number is expected to show stable growth, largely reflecting previous months.

The talk we will will surely begin to detect, however, is going to be about a) the quality of jobs created and b) the nature of wages hikes, if any.

Precious metals traders are particularly interested in that conversation since we are still searching for the spark of inflation that will benefit us until the Fed comes to douse the fire with an interest rate hike.

What will benefit us most? A sudden, steep rise followed by stability, because gold, in particular, needs a "new normal" when it comes to inflation. A spike and a dive won't help.

As always, wishing you good trading,